Saturday, 9 May 2020

Sale and lease back deal on 20 planes to net Southwest $815 million.....................

Photo Southwest

The largest low-cost airline in the US, Southwest Airlines is going ahead with a special sale and lease back deal on 20 of its Boeing 737 aircraft, to raise an expected $815 million, the company confirmed in regulatory report filings on Friday.

This is another action the airline is taking to help it conserve cash as it struggled to cope with a 95% drop in passenger traffic caused by the coronavirus COVID-19 pandemic. 

Southwest is selling 10 of the firms 737-800s and 10 of the grounded 737-MAX 8 aircraft that hasn't flown for over a year following to fatal crashes revealed a catalogue of design and safety flaws in the latest incarnation of Boeing's most popular 737 jets.

The airline hasn't revealed which aircraft leasing specialist had agreed to take on the aircraft and none has responded to our requests for confirmation.

The airline also confirmed its frequent flyer programme, Rapid Rewards, had held onto the Freddie Awards title of Best Customer Service for the eighth consecutive year. The Rapid Rewards Programme was also named Best Redemption Ability and Best Loyalty Credit Card and Program of the Year for the fifth year in a row.

"We thank each and every Customer and Member who voted for Southwest's Rapid Rewards Program. We are thrilled to win in four categories at this year's Freddie Awards," said Jonathan Clarkson, Managing Director of Marketing. 
Photo Getty

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